Atari US files for Chapter 11 bankruptcy

Atari Inc and three affiliates filed for Chapter 11 bankruptcy in New York over the weekend in a bid to break free from French parent company Atari SA - formerly known as Infogrames - which is said to be struggling with debt.

It is believed Atari US hopes to find a buyer to take the firm private, subsequently allowing it to focus on mobile and digital games, according to the LA Times.

Atari's revenue dropped by 34% in 2012 and 43% the year before. Profits, meanwhile, have also been relatively small, while Atari SA share prices are now worth less than a Euro.

The company is also said to be reliant on London's BlueBay Asset management for cash, which has left Atari US unable to release a number of games currently in development.

Atari Inc has since secured financing worth $5.25 million to continue operations, and will emerge from bankruptcy with little or no debt should it find a buyer.

The Atari name has had a long and confusing history. The original Atari Inc. split into multiple divisions in 1984, with the brand changing hands with Tramel Technology and Hasbro Interactive over the next few decades.

Screenshot Gallery: Atari Arcade Classics...

Next
Pong (1972): This simulated version of table tennis was one of the first ever video games, and its commercial success helped spawn the industry.
1 of 24